Taxpayers won't recoup £66bn from bank rescue
Friday 16 November 2012
Taxpayers are unlikely to ever recoup the £66bn spent saving Royal Bank of Scotland and Lloyds Banking Group from collapse, a committee of MPs has warned.
Margaret Hodge, chairman of the Commons Public Accounts Committee, said the sale of Northern Rock to Virgin Money earlier this year was a bad omen for the Government as it looked to wind down its holdings in both part-nationalised lenders.
Northern Rock was taken into state ownership almost five years ago following a run on the bank in 2007. The bank was eventually sold for £931m, leaving taxpayers nursing a £469m loss.
"There were only two bidders," Ms Hodge said. "The lack of competition does not fill us with confidence that the taxpayer will make a profit on the sale of the two banks which remain in public ownership. There is a risk that the £66bn invested in RBS and Lloyds may never be recovered."
The committee also criticised the role UK Financial Investments played in managing Northern Rock. The body, which controls taxpayers' stakes in banks, was meant to generate lending of £15bn from the lender but only managed £9.1bn before it was sold.
"It is vital that the final decisions on the wholly owned banks are made with value to the taxpayer taking precedence over speed of exit."
- 1 Home Office says Nigerian asylum-seeker can’t be a lesbian as she’s got children
- 2 What happens to your body when you give up sugar?
- 3 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 4 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 5 Apple and Google users being spied on for a decade because of 'Freak' security flaw
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...